Hello
I want to sell digital software online.
Need a help to get some information.
Do I need Import Export code for that ?
Do I need to register in each country I want to sell ?
Does GST is applicable if software is downloaded by person out of india ?
As there are no human replies , I am using ChatGPT to answer your query. ; Do your own research after this.
Do you need an Import Export Code (IEC) to sell digital software online?
Short answer: No, not anymore.
Why?
In 2021, DGFT removed the requirement of IEC for export of services, and digital software downloads count as export of services, not export of goods.
Selling software digitally = export of services
Export of services = IEC not required
You only need an IEC if you’re exporting physical goods.
Do you need to register in each country where buyers live?
In 95% of cases: No.
Because you are not physically present in those countries, you are just delivering a digital service from India.
However, two exceptions may apply:
Exception A: Countries with special digital-services VAT rules (e.g., EU, UK, Australia)
Some regions require foreign sellers of digital goods to collect their digital VAT (called VAT MOSS, OSS, etc.).
But in practice, this applies only to big platforms, or when you sell substantial volumes and deliver directly to consumers.
For most Indian small sellers:
You do not register at the start
These countries rarely enforce it on micro sellers outside their jurisdiction
Platforms like Gumroad, Paddle, Shopify with Stripe Tax can collect and remit this automatically
Exception B: Selling through marketplaces
If you use:
Gumroad
Paddle
App Store
Play Store
Amazon
Etsy
Then they handle foreign VAT/GST.
You don’t register anywhere else.
Is GST applicable if the software is downloaded by a person outside India?
This depends on whether the transaction qualifies as export of services under Indian GST rules.
The rule has 4 tests.
Let’s check them:
Export of Services (all conditions must be met):
Supplier is located in India – Yes
Recipient located outside India – Yes
Place of supply is outside India – Yes
Payment received in foreign currency or in INR via permitted RBI routes – Important
Supplier and recipient are not merely establishments of the same entity – Yes
If all above are true → It is an Export of Service.
If it qualifies as export:
GST = 0% (zero-rated)
You do NOT charge GST
You must report it as export in GSTR-1 & GSTR-3B
But:
You must receive the payment in:
USD, EUR, GBP, etc., or
INR under RBI’s permitted rules (e.g., via Stripe/PayPal’s export settlement)
If someone abroad pays through UPI or Indian rupee card, it may not count as export → GST applies.
Problem is whenever I ask CA, every CA has their own opinion on this.
I think it is more straightforward these days, and whatever @dtyxg mentioned should hold. If you want to be safe, you can request "Advance Ruling’ from the dept.